RideNow Group (NASDAQ:RDNW) versus Expedia Group (NASDAQ:EXPE) Financial Survey

Expedia Group (NASDAQ:EXPE) and RideNow Group (NASDAQ:RDNW) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Volatility & Risk

Expedia Group has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, RideNow Group has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

90.8% of Expedia Group shares are owned by institutional investors. Comparatively, 66.1% of RideNow Group shares are owned by institutional investors. 5.2% of Expedia Group shares are owned by company insiders. Comparatively, 55.3% of RideNow Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Expedia Group and RideNow Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expedia Group	0	23	16	0	2.41
RideNow Group	1	2	0	0	1.67

Expedia Group presently has a consensus price target of $286.27, indicating a potential upside of 9.97%. RideNow Group has a consensus price target of $7.50, indicating a potential upside of 27.55%. Given RideNow Group’s higher possible upside, analysts clearly believe RideNow Group is more favorable than Expedia Group.

Valuation and Earnings

This table compares Expedia Group and RideNow Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expedia Group	$14.73 billion	2.17	$1.29 billion	$11.36	22.91
RideNow Group	$1.08 billion	0.21	-$52.40 million	($1.24)	-4.74

Expedia Group has higher revenue and earnings than RideNow Group. RideNow Group is trading at a lower price-to-earnings ratio than Expedia Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Expedia Group and RideNow Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Expedia Group	9.81%	84.33%	7.42%
RideNow Group	-4.28%	-2,628.57%	-1.85%

Summary

Expedia Group beats RideNow Group on 12 of the 14 factors compared between the two stocks.

About Expedia Group

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.

About RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.